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it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. stephanie, time for your final trade. >> naf star, i like the truck cycle here. snrsz i don't mean to interrupt your phone call or anything but final trade. >> energy, exxonmobil, about to take over as leader again. >> mr. weiss? >> did they just give you that trade? tbf. a long tbf which is short 20 years. >> nvidia. a lot of buying in june of this year, 12 strike calls. so six months out. an fast money trade but a long term bullish trade.
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>> quick check of the s&p 500, dipping just below 1500. after topping that, for the first time since december of 2007, quickly, joe e. >> listen, on long apple, stephanie and i were just talking about it, the large institutional sales will come in this afternoon. >> we will certainly track that the rest of the day on "power lunch." pick up the ball and run with it, my friends on "power." right now. >> second half of the trading day gets under way right now. >> rally on be everybody. dow almost within a hundred point at 14,000. we are at highs not seen since the fall of 2007. not seen. just like manti's girlfriend. s&p back across the 1500 mark for the first time since december of '07. it is within 65 point of its all-time high. there are the industrials. that begs the question, america, is it time to get back in the game? a key theme throughout this hour of power.
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or are you an hour too late to get back into the game? another big store, i of course, apple, feet to the fire. yes, that's what we do. yesterday a top analyst told us the stock would go up. we are back today to hold his feet to the fire after 10% fall. he is changing his tune a bit. that is minutes away. but first, sue herera at the new york stock exchange. as we climb. sue? >> thanks. for many, this is an under the radar rally. make no mistake about it. bulls back on wall street for now. s&p as we mentioned, crossing the 1500 mark for the first time since '07. despite the fact that apple is having a down day about 10%. should note transports are up about 65 point. kenny is here with me right now and you think that fact that market can rally despite apple is extremely bullish? >> i think it is a great sign. a lot of people were talking about, they were nervous. what would happen if apple missed. this is the catalyst to bring the rally to an end. the fact that this market is in
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fact not doing that at all says a whole lot for the breath and really for what internals of the market are. disconnected from apple. apple is unto itself now and the mark set moving on. quite honestly, in the bigger s&p stocks, you might see tech money going out and coming into the more stable stocks. the dow stands to benefit. >> we have seen that today. and some of the money is going into the transport as i mentioned now, up 66 points. if you follow the dow theory, that is confirmation of the move that we are seeing in the dow jones industrial average. so i think the big question though is kenny, after we pass some of those mile stones, is that signal to get in or is that the signal to take money -- >> at this level, i'm more cautious. we have had 5.5% move in three weeks. >> right. >> straight up with no back-off at all. so i think -- >> despite -- >> right. time tells you it should back off a little bit so i wouldn't be so anxious to jump in there. i think you will get an opportunity. maybe not a huge opportunity but i think it will back off a
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little bit. >> all right. we will see you a little bit later and have a great discussion. meantime, ty, back over to you. >> all right, sue. stock today is trading right there down $58 a share. at 455 .91. 24 hours ago we had apple analyst on. listen. >> would you buy it at this price for let's say one to two-year holding period? >> yes. we like the stock at this level. >> shaw wu is a brave man for coming back on "power lunch" today. shaw, we will hold your feet to the fire. are you changing your tune. it's 58 below where it was when you said you liked it that price yesterday. >> tyler, we're not changing our tune. we think the story is still a very good gross story and you know, frankly with, we are
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surprised with this reaction. but we believe this is a great level as an investment with investors with the longer term horizon. >> so i guess what i'm hering you say here, is if you liked it above 510, you like it even more at 455 as a buying opportunity. right? >> no, yes. in the near term admittedly, there will be a credibility issue, right, with the company. the company's got to regain investor trust again. so that's going to be an overhang. but we still see -- >> you're not changing your tune, you say, but you are changing your price target and you're lowering it. that's $58 ago, right? >> that's correct. the new price target is 715 and we are assuming a 10 multiple now. opposed to 12. and also taking into account its cash balance. we think a 10 multiple is, you know, is fairly -- we think reasonable. >> all right, shaw wu, thank you
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very much for coming back and letting us put your feet to the fire. we appreciate it. >> great, thanks. >> sue? >> all right, ty. as you might imagine there are several apple suppliers and chip stocks getting hit higher today. seema mody is following that for us. she is a at the nasdaq. >> concerns about future demand for apple's product is hurting not only shares of apple but its component suppliers as well. let's run through a couple of them. sears logic specializing in analog chips and gets a majority of revenue from apple. newest communications from behind the mobile app siri. two chip names there to take note of. omni vision specializing in cameras, reportedly used in iphone shares trading lower. chip stocks also under pressure. moving lower on 17% drop in quarterly earnings. back over to you. >> thank you, seema, very much. as apple is getting crushed today, very different story for
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netflix which is surging now up 37% on the trading session on better than expected growth expectations. now julia boorstin spoke with ceo reid hastings exclusively. >> we grew from the beginning of the year to the end of the year. nearly 10 million streaming subscribers. what we want to do is keep making the service better and better. some quarters we come in a little above forecast, some quarters a little below. it is more after forecasting issue than a business issue. >> so investors fled apple which made $13 billion in its fourth quarter while pouring money into netflix and they only made 8 million. what is going on here? john fortt covers apple and julia boorstin covers netflix. julia, i will start with you. it has been in this range a number of times before yet we see the most enthusiastic option for this stock in this particular quarter. why now? >> sue, i think it is an
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expectations game. wall street expected 13% loss. instead you saw a 13 cent kbgai. despite a ton of new competition it is able to grow subscriber base, both in the u.s. and internationally and the fact that they are going to see this kind of consistent growth, you know, see reed hastings projected growth, it is a very positive thing and he also talked a little bit about how they won't have to raise prices. they can afford to pay for premium content and that will bring in new subscribers. i think that's a good thing to wall street. >> john, when i talked to an analyst earlier this morning one of the reasons he said apple is crushed obviously because of its report and guidance but the reason netflix was surging is netflix is in the internet tv space and a lot of people want apple to go there and they are not so far. do you agree with that, or not? >> no, i don't think that's what it is. i think it really comes down to again expectations and there is a little bit of an underdog bias it seems in the market these
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days. look what nokia has done. what netflix is doing. if people were beating up on you before, they are more likely to rally behind you now. apple is a darling now. didn't manage expectations very well. despite the fact iphone units were up 29% year over year, that just wasn't enough to meet what people expected. so going forward we will see if they can reset the expectations. >> indeed. thank you both, appreciate it very much. ty, over to you. >> will microsoft give investors to cheer about? software giant reports earnings after the bell today. while the dow and s&p are flirting with all-time highs, set in october of '07, microsoft is basically going nowhere, down 5% over the same period of time. john fortt is on that story as well for us. john? >> yeah, tyler, the street is looking for around 75 sent in eps on 25.1 billion in revenue, the decline in the pc market looks to be down 5 or 6% year
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over year. looms pretty large over this report. analyst are expecting the bulk of the revenue contribution to come from the business and server and tools divisions. ibm suggests enterprise spending might actually hold up. that a good sign for them. windows isn't expected to do that badly, just over 5 billion in revenue bolstered by businesses refreshing pcs with windows 7. that would be pretty good considering that number i gave before about pcs being down year over year. so we will see. we will also get a strong showing from the entertainment and devices division where xbox and kinect add strong season. so the business division is the most important but it will be interesting to see how the entertainment business is growing. tyler? >> thank you very much, john fortt. how should you play microsoft ahead of the results. joining is yun kim.
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what do you like about microsoft and what will you look for in the report today? >> sure. just like anybody else. we are looking for contraction with the windows phone 8 in the marketplace along with the sales of the windows surface platform. basically we are looking for whether or not microsoft can actually do well in this post pc environment whether or not their mobile strategy and windows strategy can come together and be relevant in the post pc era we are living in. >> a lot of people who owned microsoft for a long time have to wonder, when is this stock ever going to perform. do you have an answer for that? >> again, it just comes down to whether or not the company's windows franchise could survive in the post pc era we are living in. their chances are pretty bleak. they do have, just like other people pointed out, they have a good strength in the enterprise business but the stock is really
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about, again, contraction in the consumer market, especially around the windows franchise. that is heavily what is driving their profit for the company. >> dihear you just say that you think the future of their platforms are pretty bleak? >> well, that's how the stock is reacting right now. you know, obviously they do have some chances here and there. again, they do have windows phone 8 that's out that seems to be gaining some traction off of a very low base. i think that will take some time for people to realize whether or not they are making any kind of traction within the market. don't forget they are playing catch up. they can't simply have another phone out there and hope to battle against samsung and apples of the world. >> would you buy it at $28 a share? >> we prefer to wait. i have a neutral on the side right now. >> yun kim, thank you. >> thank you. >> michael far, president of far, marshall and washington. >> thank you. >> we were talking earlier and
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it hasn't rewarded you for a long time. >> it hasn't rewarded us. >> why do you hold it. >> let's look at numbers on microsoft. expecting 75 sent for the quarter with be that turns into about three bucks for the year. on a $27 stock microsoft is trading around nine times this year's estimates. 5.60 sint cents in cash and 3% yield. this is a stock with a lost cash, a lot of flexibility, good model and yes, we've had trouble with pcs. and because in terms of a pc cycle, it has been somewhat elong gated bay shift to the tablets. people are buying tablets. with a mature, very nice safe company, sooner or later, i this i they get it right. but you get paid to wait. >> but you've been waiting a long time, michael. i hear you nibbling at the value. you talk about the cash on hand and pe ratio. but the truth is, value stocks can stay value prices for a damn
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long time as this experience of yours proves. >> for a damn long time. we look at these kind of large companies that i think after a while almost get to be cyclical. you take a look at ibm. ibm went through the sort of same year multiyear trough and everybody said growth is over and all of a sudden we have services picking up and another part of the business generating revenues. ibm is one of the best stocks we've had, right? >> is it invest in mature large cap tech at your own risk? including apple? >> well, i think at the risk of your own patience. because if you invest in large cap tech one are diminishing the risk. a lot of them have huge cash positions and franchises. so the risk of ownership, the risk of making money, you bet are be very patient here. those folks patient with ibm have certainly gotten paid. we think we will get paid in microsoft. i'm not rushing out to buy it, okay? >> you think it'll be a good
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holding. >> i did. and i'm praying about that too. i develop faith on these things. >> we will have you back later on "power lunch." get some broad market thought about whether this is a good time to get in or not. sue, down to you. >> thanks, guyes. president obama will nominate mary joe white to lead securities and exchange commission. he will do that later today. ms. white has broad experience, prosecuting white collar crimes. she was u.s. attorney in new york's southern district for a decade and she prosecuted the terrorist in the first world trade center attack in 1993. "street signs" will have that announcement coming up live in the next hour. ty? >> all right, sue. we are starting a brand new segment on "power lunch" today. we will go market to market across the country to see what for sale. what's tempting, like this big one here. and how far your money will go. well talk with real real estate brokers on the ground. well tell you where that house is, what it is going for, and we will show you it, later on "power lunch."
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welcome back to "power lunch." i'm bertha coombs and we have a lot of retailers looking good. bed bath and beyond got an upgrade by oppenheimer. these are some of the best performers today in the s&p 500. discretionary, in fact, the best sector. >> thank you very much. appreciate it, bertha.
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dow and s&p 500 marching to all-time high levels. already at levels we haven't seen since october of '07 and the airline sector has had some stellar performances within that time period. phil lebeau is taking a look at those high flyers. pun intended, florida. >> three airlines reported earnings. take a look at united. smaller than expected loss. on a conference call, jeff says they stand by the dreamliner and are expected to get it back some day. then south beats the street by a penny. telling squawk box, some day they could change the baggage charge policy. finally alaska, coming in inline with estimates. when you take a look at all of these stocks, going back over the last year, heck of a run particularly over the last five or six months. look at that. all of them moving substantially higher since august but go back to '07 and there's only one
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airline stock that has done well. alaska air. up 252%. rest of them, they are all down. so there's the difference guys. you see the market coming back. only the last six months we are seeing rebound for airline stocks. >> that's a huge percentage increase for alaska air. that's phenomenal. thank you. >> before we let you go, big event coming up later. regarding boeing's dreamliner. do we have any idea what it is, what the details are? >> ntsb is holding a press conference at 2:30. we will have it during "street signs" and they will talk about the investigation looking into the safety of the lithium ion batteries. it'll be interesting to see if they tell us exactly what they have determined so far. my indication, based on people i have talked with, sue, we are a long ways from them finding a route cause for the problem with the dreamliner and dreamliner batteries. >> phil, thank you so much. >> you bet. >> lockheed martin saying it sees weaker sales in 2013. pentagon's biggest supplier says
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it assumes congress will avert $500 million in spending cuts known as sequestering. those cuts were scheduled it start kicking in in march, not all at once, however. the stock of lockheed martin down to 3.61 today. rage yum profit down because of lack lust every sales. that will do it to you every time. also expecting lower earnings. rate now, raytheon trading down. general dynamics with a loss forecasting 2013 profits below straight estimates. gen dyn down 73 cents. the state of the golden state. did raising taxes work for california? we know it didn't work for phil mickelson. >> we hope he doesn't move away because we need him in his state of the state speech, governor quotes genesis seven years of fat followed by seven years of
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percent on today's trading session. coffee king reports results after the bell. the company is expected to post earnings of about 57 cents a share. cnbc of course will be all over those numbers as soon as they cross on the closing bell. ty? >> sue, california governor jerry brown delivering his state of the state address today. so did raising taxes on the wealthy really work? jane wells analyzes in l.a. jane? >> well, it appears to far that higher taxes, cuts and improving economy maybe do work miracles. quote, california did the impossible, says governor brown. who claims the golden state will only clear the deficit but will have a billion dollar surplus a year later. last month the day took in a single day record for personal income taxes. $2.2 billion on one day. mostly from those who play quarterly. however this could be front loading as people declared income and took capital gains
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ahead of higher federal coxs. even so the budget holds items but increased education spenting. >> fiscal discipline is not the enemy of our good intentions but the basis for realizing them. it is cruel to lead people on by expanding good programs only to cut them back when the funding disappears. this is not progress. it is not even fro greprogressi. it is an illusion. boom and bust serves no one. we're not going back there. >> however, the governor hasn't said how he will pay for medicare expansion under obama care. he has proposed pushing that cost on to counties. >> i'm sure that would be unpopular with some counties. but nonetheless. jane, thank you very much. as the market rides,er with are looking inside several sectors, housing stocks in particular. and you will never guess who wants it buy a boeing 787 dreamlineer.
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nasdaq is the lagger, of course because of apple. let's go to seema mody at the nasdaq. >> we are watching shares of apple weigh on the nasdaq. we are seeing nasdaq major underperform, down about 11.5 percent today. just to reset stats, the company lost about $230 billion since its september high of 705. it is waiting strong from 20% in september 2012 to just 13.7 percent on the nasdaq 100. and roughly 9% on the nasdaq composite. but okay, enough about apple. let's look at the big mover of the day. to the upside. that's netflix up about 38% of the day, posting unexpected profit as well as strong increase in subscribers. take a look at amazon as well announcing acquisition of text to speech technology company, that stock better than 2%. sue? >> thank you very much, seema. let's look at the gold markets. closing right now and we did see
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some selling in gold earlier. sharon epperson is tracking the action at the nymax. not surprising given what we saw this morning, sharon. >> absolutely. we are seeing gold sell off into the close. below the 1670 level. or right around that mark. down right now. keep in mind that gold has tried several times to get to that 1700 level and been unable to do so and so technically, very weak market here. traders are saying. and that's part of what we are seeing in the sell off here. we heard from hsbc today. they have half of their allegation to gold, cut it in half. saying they no longer see it as the inflation hedge. they want to be in tips instead. in terms of where gold is holding up pretty well, it is in yen terms. gold is falling off in every other currency. but when you see how the yen is hammered, gold is holding up relatively well. sill lettsilver is the biggest decliner on the day, sue. >> thank you.
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its come off of that and stocks are well off of their highs of the day. let's get trading action with mary dave "softy" mahlerson who joins me here. >> we have basically cut things in half. >> we had triple digit gain for the dow up 48 points for now. basically, what we are seeing, sue, is concerns about apple. disappointing results there. and overall i think what you want it look at is earnings. a number of company beat their earnings within top and bottom line. so that's not great. nevertheless we did see s&p break above the 1500 mark for the first time since december of 2007. traders were surprised they didn't see a bit more after pop once we moved above the levels or consolidation which appears to what we are seeing now. delay consolidation at these levels for the s&p 500. nevertheless we continue to see some all-time highs and a number of key groups. take a look at etfs for the consumer. etf at all-time high. retail etf at all-time high and u.s. home construction etf is
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now at five-year high. multiyear high for that and take a look at other groups that are doing well today. as represented by the etfs. financials at an all-time high. materials and industrials, 52-week highs. the weakness in particular today continuing to be the tech sector. that's reflected in the nasdaq. >> thank you very much, mary thompson. >> you're welcome. let's check the bond market and see where yields are sitting. as money went into equity. we saw a sell off in the bond market. that is changing a little bit. still in the red in terms of bond market performance. however, we have come off of our worst levels of the day as stock market has started to pair its advanced and to yield on 30-year bond is now at 3.4 -- 3.04%. ten-year backed up in terms of yield to 1.84 percent. we were at 1.84 this time yesterday. that's a lock at bond market this hour on "power lunch."
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>> with the s&p breaking the 1500 mark for the first time since '07, joining me on the floor is kenny, director of floor operations for o'neill securities. ty is back at headquarters. with o our contributor, michael far farr. watch this market carefully, it is not going to be positive if we lose all of our gains on the day. >> in fact it may not but that shouldn't surprise anybody. we have been talking about the rally we nd three weeks with no pull back at all. it is looking for a reason. i do though think the market has been collapsed based on apple. actually you want it to wack off based on the 6% move in three weeks we've had. >> michael, would you agree with that? >> i think 6% on top of the 16% we saw from the s&p in 2012, you know, you see the markets go up 22 percent and everyone feels good and they say, gee, i think i might buy this now. that's the time when you start thinking about selling. one rule i've learned in this
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business is if it feels bad, do it. right now, it feels bad to be -- forget everything you learned in the '70s, sue. if it feels bad, do it. rit few it feels bad to be selling. there is a lot of cash around -- it doesn't feel like the bottom will drop out any time soon. >> right, right. >> michael, you think that now is the time to be cautious, not to jump in with two feet. but if you were buying and you were following a dollar cost averaging strategy -- >> sure. >> you put in money overtime, equal installments to average out cost per share. what areas do you like? we talked a moment ago about big mature high-tech large cap stocks. the history of them has not been positive. >> well -- >> with the exception of ibm. >> on the tech side, google has been terrific. depends when you catch the big large cap stocks and when you buy into them. qualcomm has been terrific for a long time and continuing to grow. so it really --
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>> for every qualcomm there is a hewlett-packard. for every hp, there is a dell. >> if i think if you at all times have a discipline about investing. you talk about getting in and out of market is everything i have advocated. nor found a real way to make money over the real term doing that. i like my tech stocks. i like healthcare stocks. i like some consumer stocks. some of the banks, i continue to think look fairly cheap. i own a few industrials. so for -- if you buy a diversified portfolio and hang on to it through thick and thin -- >> and kenny is agreeing with you. the longer term strategy. >> i think that's exactly the right strategy. pick the portfolio. have you it. if they are names you have done
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your homework on and listen, michael farr makes the exact point. for the long-term personing with getting in and out, you might as well hang it up. >> that's for you guys. >> my partner, john washington, is well -- >> i didn't know your partner was george washington, actually. >> they are related. almost as old. north of 0 90 at this point. john says the best time to invest is when you have money. >> what worries me is the investor at home seeing the s&p go above the 1500 mark. not realizing we had a 5 to 6% move over the last few weeks. >> you see, what is frustrating about that, if you are an investor, whether 401(k) on whatever it is, you are in the market. i can't believe you are sitting there with nothing. not participating. so if the market has gone up, you participate so you feel good. but is this the time to keep adding money? it is if you do the dollar cost average. stick to that schedule and do
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it. >> have a strategy and discipline and stick to it. >> we have to leave it there, kenny. sorry. sue, thanks very much. our friend, jim cramer, said you need to do an hour's worth of research for every stock you own. that sounds like sound advice. >> i have an analyst, thank god. i need smart people. >> that's what we all need. >> let's go to bertha coombs who does her homework everyday. >> definitely outsource research in terms of investing. as far as transports, another day, another high. swift transportation, trucking company, posting earnings that topped on both the bottom line and the top line. the company has been looking -- earning 38 sent, street was looking for 26 cents. they say the metrics look good. still having trouble retaining truck drivers but doing better than average. if you are looking for a job, train to be a truck driver right now. >> there you go. and train to get into the stock. it is up 26% if you get the job.
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>> other big headlines to tell but as well. itt educational services reporting a quarterly loss as it signed up fewer students this time around. rimm is higher after bloomberg report citing cfo saying his company could be interested in a rimm bend. nokia, after the finish mobile phone maker, says it plans to halt its annual dividend for the first time. underarmor, president of footware is leaving after three and half years, including developing a number of key product for underarmour. and ty, that stock is a hot performer. >> as they race toward record highs, haltingly today, you might be surprised at what most makes investors feel wealthy. not stocks. housing. speaking of housing, we will
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apple posting record earnings rulgesults. is the company still a victim of high expectations? 43% say yes. 19% say no. 38% say if you rise too fast too fast you are bound to have a hard landing. let's see "street signs" where all landings are soft. >> valuation is still good to so we will talk to someone who looks at all of the metrics.
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plus, has the middle class released stats? we will have someone on that says it is all a big myth. and netflix wants to be the next hbo, but better. we will talk to the author after fos fascinating article. all those things coming up at the top of the hour. brian is getting his make-up on as well. sue, ty, back to you at "power lunch." >> it's great to have the whole gang here. thank, mandy. marching towards levels we haven't seen since october 9 of 2007 and home builders have been on fire since then. which stocks are leading the way this time around? diana olick is in d.c. and she has a look at that for puus. hi, diana. home builders stocks hit their peak in july 2005 during the housing boom and we are still around 35% below that but the stocks are up over 240% from
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their trough in march of '09. some calling the stocks overvalued on the fundamentals. david goldburg at ubs says this is a momentum play. just because the stocks are overval i'd, he says, doesn't mean they won't rise even more given expectations. but, what if expectations aren't met? recent earnings releases show new orders way up but not as high as they had been and on the day stocks were lower. a lot of things have to go right for builders because there is tremendous growth baked into 2013. estimates of starts and new homes sales up around 20% for the year. for more stats on the stocks, go to the blog realty check at >> maybe we get there, over the next few days. who knows. when it comes to feeling wealthy. feeling rich. it is not stocks. it is housing. housing prompts stocks.
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hi. >> hi, tyler. when people feel wealthier, they spend more and right now they are feeling the wealth effect. here is why. a new study from carl, john and robert as in case shiller finds that housing drys people's spending much more than stocks. it is called the wealth effect. while this idea is not new it finds a gain on housing wealth like we had between 2001 and 2005 would drive up consumer spending by 4.3% as for stocks, well, they say there is quote weak evidence to support any link between the stock market and consumers spending. but and here is the big but, that may not be true. for the wealthy. who after all do a lot of spending in our economy. among the top 1%, investments, twice that amount. the bottom line, housing drives the wealth for most americans but stocks drive the wealth of
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the wealthy. good news right now, is that both groups are feeling richer and should drive spending higher. back to you, tyler. >> raul right, robert, thank you very much. today we start something new on "power lunch." we will call to the powerhouse and each woke we will take a look at a top 20 housing market across the country. take you all across the country and talk it a realtor who is there on the ground and look at some of his or her prime listings. this week, and we start in phoenix, arizona. with this little map here, there we go, zooming in on maricopa county. a luxury realtor with cambridge properties. it is interesting, we will give you a couple of statistics here. average listing price around 278,000 week over week. well talk today, phil, a little bit more about high end listings. how healthy, overall, is the market there? are the buyers back, phil? >> buyers are back. i'm telling you, it is
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interesting what has happened. pretty much we have kissed our short sales and foreclosures good-bye. distressed properties are decreasing at this time and especially for the luxury market we definitely see the buyers coming offer fence and just going into it. >> let's jump into a couple of these listings. we will start with one in the 700,000 price range, 750. take me through this condo in with downtown phoenix. show me it. >> absolutely. this is just a gorgeous property. what is really nice about this property, it is so close to the airport and in central phoenix, downtown phoenix. this is a complete remodel. it was actually featured on hgtv, available for lease at 5,000 a month and obviously for sale at 700,000. but this has terozza floors. only two bedrooms two baths about 2300 square feet but
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incredible views. if someone want to see what phoenix has to offer, this is it. >> let's go to listing number two. we step up in price here. single family dwelling on shadow trail. 3502. in mesa. and the ask there is $2.2 million. >> $2.2 million. again, over the top type of luxury properties. this one especially has incred ill finishes. the homeowner is an incredible designer herself. sterling silver inlayed in italian marble as soon as you walk in. for arizona, it is just a really interesting, interesting property. >> very nice outdoor kitchen there, i suspect that price point you're going to get that. look at that kind of -- look at that display there. flourish. >> right. water features are just incredible. >> this place has been on the
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market for more than a year. i wonder whether you find that sellers today still tend to price a little too high, generally. >> luxury market is a little different. sometimes you can put a property on the market and within 30 days, it will get snatched up. some property are just so unique that the right -- it is just waiting for the right buyer. being on the market over a year, especially in luxury market, is not -- is not that critical. >> let's go to the highest of the high end. 6500 square feet. built in 2003. north scottsdale. everybody knows scottsdale. house of the week just came on this week at 3.5. tell me about it. >> correct. $3 b $3.5 million. this is over the top. not the walt disney castle, that's for sure. not made like a walt disney castle. this has incred ill finishes.
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imported stone from all over europe. incredible flooring. there is a video on-line and it can take you through the entire home. this has a grotto like, an italian gothic master piece, that is nowhere to be found, all over the state of arizona. >> disney it might not be, but randolph herst it might be. >> kansas is getting near to eliminating the state income tax. the question is, will it create jobs or cut back on services? and you won't believe what corporate exec is on order to buy a boeing 787. all ahead in the power rundown. using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent.
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it's time for power rundown with us today, cnbc chief international correspondent michellecaruso-cabrera. the pentagon is getting ready to lift the ban in women in combat roles. michelle, what do you think? >> i think it is great.
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not just the positions but promotions women couldn't have gotten otherwise. and i think bottom line, there are physical requirements to do certain jobs. if you are a man or woman, you pass the test, can you do it. i would say there are probably some women who can do jobs that a lot of other men can't do. i think is great. >> in the past when we tried to do this without lowering requirements, not the military but fire departments, police departments. we wound up lowering the physical requirements. i worry about that. i don't want to see -- i don't think this will dramatically undermine the effectiveness of the u.s. military. i think it may mean that more women will be killed in combat. i'm not sure that is a great quality. >> on the verge of eliminating its state income tax, it could end up with a blueprint for other states. what do you think? >> i grew up in a state would w no income tax, new hampshire.
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taxes came from taxes on fast-food and property taxes. so you ended up taxing the rich more, right? because the bigger your property was, the more you paid. >> a lot of people feel there will be cut backs in other areas to make up for the lack of income. or as michelle talked about, can they make it up in other areas. >> money moves to taxes that get rid of their -- states that get rid of income tax. like $150 billion over the last 15 years, according to "how many walks" moved from states that had income tax to states that didn't. the nine highest taxed states lost a hundred billion of income -- of wealth, rather. it is proven it works. it attracts wealth to your state by getting rid of income tax. >> i couldn't believe this but for the billionaire that has everything. michael dell is on order to buy a boeing 787 dreamliner. i don't know if it is him per se
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buying it or whether the corporation that behind him that does it. >> this is a mystery p.m. pep familiar with him say it isn't his style to have a big plane like this. it is done through international leasing. it could be that the family office, the company that manages his family's vast wealth, maybe use it for who knows what. or maybe they'll lease it out. people do that. just like you buy property and rent it. can you buy a plane and rent it out. maybe that's what he is doing. >> what do you think, john? >> a few years ago, dell had a probably with batteries, lighting on fire in lap tops. he boeing's problems, and thought would he help out. >> a sympathy play? >> yeah. >> we will leave it at that. dance in front. mona lisa? the xbox is in a place that you would never have expected. we will explain when we come back on "power." platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily.
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Power Lunch
CNBC January 24, 2013 1:00pm-2:00pm EST

News/Business. Sue Herera, Tyler Mathisen. Today's news on the economy, markets, real estate, media and technology. New. (CC)

TOPIC FREQUENCY S&p 12, Apple 9, Us 7, John 5, Tyler 5, Ibm 5, Dell 4, U.s. 4, Boeing 4, Washington 3, Phoenix 3, California 3, Alaska 3, John Fortt 3, Arizona 3, Ty 2, Bertha Coombs 2, Charles Schwab 2, Kenny 2, Julia Boorstin 2
Network CNBC
Duration 01:00:00
Scanned in San Francisco, CA, USA
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Tuner Virtual Ch. 58 (CNBC)
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Pixel width 704
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on 1/24/2013